The Influence of Price and Service Quality on Customer Loyalty
DOI:
https://doi.org/10.61730/rcpwzc68Keywords:
Air Conditioning Services, Customer Loyalty, Multiple Regression, Price, Service QualityAbstract
This study aimed to examine and determine the partial and simultaneous effects of price and service quality on customer loyalty at PT. Eka Ridho Sentosa. The study employed an associative causal quantitative approach. From an active population of 120 customers, a sample of 92 respondents was determined using Slovin’s formula with a 5% margin of error and drawn through an incidental sampling technique. Primary data were gathered using structured Likert-scale questionnaires and processed through multiple linear regression analysis after fulfilling instrument validity, reliability, and classical assumption tests using SPSS software. The empirical results revealed that price had a positive and significant effect on customer loyalty (). Service quality also significantly and positively influenced customer loyalty (). Simultaneously, both price and service quality showed a significant effect on customer loyalty (). The Adjusted value was 0.870, indicating that 87.0% of the variance in customer loyalty was accounted for by price and service quality, whereas the remaining 13.0% was explained by factors beyond the research model. Price and service quality served as fundamental determinants in strengthening customer loyalty. Sustaining customer retention in the air conditioning and mechanical contractor sector requires establishing competitive, value-aligned pricing while consistently maintaining field technical service reliability. This study provides empirical evidence regarding the joint effects of price fairness and technical service dimensions in addressing customer attrition within the local air conditioning service industry.
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